News Special

HONG KONG

Tesla Generates Retail Energy in Wan Chai

Electric car leader Tesla Motors is revving up its presence in Hong Kong with the opening of a new 3,000 sq ft showroom in Wan Chai opposite the Hopewell Centre on Queen's Road East – near other top luxury car brands such as Rolls Royce and McLaren.

"The landlord loves cars; that's why so many car companies have become their anchor tenants in the area over the years," says car enthusiast Patrick Tsui, Associate Director, Retail at JLL.

Tesla had been looking for prime locations in Hong Kong, and JLL advised them to consider the former Mini showroom because of its corner location, prominent street-front façade, and a leasing package that included additional car charging spaces and extra parking.

"We assisted Hopewell in customising the standard Tenancy Agreement (TA) – because the landlord likes Tesla, the tenant was invited to raise any specific changes to make the showroom exciting and functional to its needs" says Tsui.

Electric vehicles are gradually gaining popularity in Hong Kong, as drivers adopt a more sustainable approach to getting around. Drivers can enjoy the same features that fuel-powered luxury cars offer, without polluting the environment.

The Tesla Model S was the best-selling sedan in Hong Kong in 2015 with sales of more than 2,000 cars. According to government data, at the end of April 2016, there were 5,289 electric vehicles on Hong Kong's roads, up from less than 100 at the end of 2010. 54 models from seven countries have been type-approved by the Transport Department. They include 36 models for private cars and motorcycles and 18 models for public transport and commercial vehicles.

"I think that 20 years from now, a large proportion of cars on the road will be electric because they are cheap to operate and easy to maintain," says Tsui. "There's little about them that can go wrong, apart from the battery."

To help boost the adoption of electric cars in Hong Kong the government has offered buyers incentives, such as first registration tax waivers until at least 2017. Charging facilities have also been installed around the city. There were over 1,300 of them for public use, covering all 18 districts in various types of buildings, at the end of March 2016.

The opening of the new Tesla showroom coincided with the announcement that Hong Kong will host the FIA Formula E Championship, the world's first fully-electric racing series, for the first time – perhaps another sign that electric cars are sparking interest among Hong Kong consumers.